Canadian HR Reporter

employees need to understand that during and after a merger or acquisition there will be many emotions that include shock, disbelief, grief, resentment, anger and depression. These emotions are all normal and employees need to understand the cycle of emotions and be provided some coping mechanisms to move through it. Make sure you are providing your people with the proper training and support during change. Acquiring Human Capital People are your most important asset - right? If this is the case then when we contemplate M&A we need to be focussed early in the process as to what, if any, risks are associated with acquiring the human capital. Once again, audits and assessments are an important part of this process. HR Professionals have an important role to play in reviewing compensation structures, benefit programs and practices, disability and WCB experience, policies and procedures, and employment contracts of the organization being acquired, as it is important to identify all the human costs and potential risks. Understanding levels of compensation (salary, incentive and benefits) and the gap that may exist between the acquired and the acquiring organization is important and will impact the finances of a merger or acquisition. As executives strategize they need to know what it will take to attract and retain the right talent in the new company. They also need to know the obligations inherited when they acquire employees from another organization. A review of benefits and the claim experience, especially with respect to disability and WCB, will provide important information on potential future risks and costs associated with talent management and the financial impact on the new company. Reviewing policies, procedures and employment contracts of the organization being acquired will provide excellent insight into how people have been managed and what the expectations will be when, and if, they are brought over to the new organization. Since people are your most important resource, it is critical to engage the HR Professionals in this process and also seek the advice of a good employment lawyer. Concluding Thoughts Mergers and acquisitions are complex and are a melting pot of very diverse people issues, in addition to all the financial and organizational components. Striking an M&A Task Force that includes a variety of subject matter experts, including human resources, is important. A good practice is the development and use of a Change Management Plan. As HR Professionals we have an important role as enablers in the M&A process, providing guidance on the important people components within it. Leveraging our expertise and experience, we support in effectively managing the risks identified from a people perspective. References: Forbes, George Bradt, 83% of Mergers Fail – Leveraging a 100- Day Action Plan for Success Instead, January 2015 Industrial Relations Centre, Queen's University – Mergers & Acquisitions: Organizational Culture & HR Issues, Deborah Pikula, 1999 Written by Janet Salopek ICD.D, CPHR – Partner and Founder Salopek & Associates Ltd. www.salopekconsulting.com SALOPEK & ASSOCIATES LTD. Salopek & Associates Ltd. is a team of human resource and business consultants specializing in strategy, human resources and board governance. Serving clients across Canada, with Associates in Calgary, Vancouver, Ottawa and Toronto, we are available on an on-call basis to help you attract, retain and develop the right people and to put effective processes in place that will grow your business.

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